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The Government of the Republic of Serbia

In the service of citizens

Funds from National Investment Plan to improve living standards in Kosovo

Washington/Belgrade, 27 December 2006

Head of the economic team for Kosovo-Metohija and the South of Serbia Nenad Popovic stated that €32.6 million that the Serbian government set aside from the National Investment Plan for economic development of Kosovo-Metohija will be used to build infrastructure facilities, hospitals and school facilities.

Nenad Popovic

Author: Tanjug

In a statement to the Voice of America, Popovic said that the government decided on this course of action at the moment when the province's status has not yet been defined because, regardless of the status, it is necessary to improve the living standard of Kosovo residents. He added that out of the total sum, €5 million will be used to stimulate economic development in areas inhabited by Serbs.

He stressed that the allocation of these funds is not related to the province's status because Serbian citizens in Kosovo, especially those living in Serbian communities who are most endangered, must have roads, hospitals and schools.

According to Popovic, the funds will be divided proportionately according to the number of residents in all five districts and 19 municipalities, though all inhabitants of the province will benefit from it.

Speaking about investing the above-mentioned funds, Popovic recalled that the National Investment Plan was presented to UNMIK and it confirms Serbia's true intent to strive towards equal-balanced regional development, which is also written in the New Constitution.

He said that the economic team wishes to create as many new jobs as possible within the sustainable development of Kosovo, adding that unemployment is one of the gravest problems among ethnic Albanians and Serbs in the province.

When it comes to privatisation in Kosovo, Popovic reiterated that the moratorium for further privatisation until the status is resolved has been demanded several times already, adding that some companies even took their cases before the court of law in an attempt to preserve their property and interest.

Popovic said that the privatisation method in Kosovo is opposite to the EU practice since it is the only example of privatisation that does not involve capital but only property, so that those who invested in these companies are practically discriminated against.